Bitfarms Ltd. it has entered into an initial agreement for a private debt facility for up to $300 million from Macquarie Equipment Capital Inc., a division of Macquarie Group?s Commodities and Global Markets? business (?Macquarie?). The initial tranche of the facility is $50 million at the parent level and proceeds will be used for project development soft costs and other general corporate purposes.
The second tranche of the facility may be up to $250 million and is drawable as the Company achieves specific development milestones at its Panther Creek location, at which time the entirety of the loan becomes secured at the project level only, resulting in a total project debt facility of $300 million and termination of the initial loan. The maturity of each facility is two years from the date of closing and each facility bears an interest at a rate of 8% per annum, with interest on the initial draw of $50 million paid in kind for the first three months. Draws under the second tranche of the facility are subject to the entry into definitive documentation, mutually agreed between the Company and Macquarie, on terms appended to the initial agreement, in addition to certain other conditions.
